Advice re: expressions of interest
Discussion
I have an idea of how to generate an accurate number of expressions of interest in a product I'm developing and I want to make sure it's not perhaps damaging in some way.
What I'd like to do is take advantage of 100% funding which is available, to have a website created with some sort of ecommerce built in. Then that facility would be used to take orders and contact details from customers but at the payment stage, to display that payment details cannot be taken at present, or something similar.
Then I'd like to collate the number of prospective customers and use that to present accurate figures to potential investors. Could this have some unforseen adverse effect on customer confidence?
What I'd like to do is take advantage of 100% funding which is available, to have a website created with some sort of ecommerce built in. Then that facility would be used to take orders and contact details from customers but at the payment stage, to display that payment details cannot be taken at present, or something similar.
Then I'd like to collate the number of prospective customers and use that to present accurate figures to potential investors. Could this have some unforseen adverse effect on customer confidence?
0191mark said:
I have an idea of how to generate an accurate number of expressions of interest in a product I'm developing and I want to make sure it's not perhaps damaging in some way.
What I'd like to do is take advantage of 100% funding which is available, to have a website created with some sort of ecommerce built in. Then that facility would be used to take orders and contact details from customers but at the payment stage, to display that payment details cannot be taken at present, or something similar.
Then I'd like to collate the number of prospective customers and use that to present accurate figures to potential investors. Could this have some unforseen adverse effect on customer confidence?
Yes it will fWhat I'd like to do is take advantage of 100% funding which is available, to have a website created with some sort of ecommerce built in. Then that facility would be used to take orders and contact details from customers but at the payment stage, to display that payment details cannot be taken at present, or something similar.
Then I'd like to collate the number of prospective customers and use that to present accurate figures to potential investors. Could this have some unforseen adverse effect on customer confidence?
k them right off.Hi,
Agreed with the last poster, that it will really 'miff' people off doing it like that.
why not use an online marketing survey instead? http://www.surveymonkey.com/ that way you'll also get constructive feedback and communication from the very customers/target audience you are wanting the funding for.
Also, why would anyone click to your proposed website, then click add to cart and then want to go and pay anyway? it seems so far you've not got anything to provide to them, so your idea seems flawed from the very beginning from what you've said, unless I'm missing something?
Cheers, Dennis! West London & Slough UK!
Agreed with the last poster, that it will really 'miff' people off doing it like that.
why not use an online marketing survey instead? http://www.surveymonkey.com/ that way you'll also get constructive feedback and communication from the very customers/target audience you are wanting the funding for.
Also, why would anyone click to your proposed website, then click add to cart and then want to go and pay anyway? it seems so far you've not got anything to provide to them, so your idea seems flawed from the very beginning from what you've said, unless I'm missing something?
Cheers, Dennis! West London & Slough UK!
0191mark said:
I have an idea of how to generate an accurate number of expressions of interest in a product I'm developing and I want to make sure it's not perhaps damaging in some way.
What I'd like to do is take advantage of 100% funding which is available, to have a website created with some sort of ecommerce built in. Then that facility would be used to take orders and contact details from customers but at the payment stage, to display that payment details cannot be taken at present, or something similar.
Then I'd like to collate the number of prospective customers and use that to present accurate figures to potential investors. Could this have some unforseen adverse effect on customer confidence?
If you've got them to the brink of buying then they will be very annoyed if they can't. If you have competitors - even if "not quite" - the chances are that you'll drive your customers into the arms of competitors. If nothing else, you'll tip off your competitors as to what you're doing. You won't be able to go back to these people.What I'd like to do is take advantage of 100% funding which is available, to have a website created with some sort of ecommerce built in. Then that facility would be used to take orders and contact details from customers but at the payment stage, to display that payment details cannot be taken at present, or something similar.
Then I'd like to collate the number of prospective customers and use that to present accurate figures to potential investors. Could this have some unforseen adverse effect on customer confidence?
A survey can work, but I'd strongly recommend that you employ a professional to design it for you. Online surveys are easy to set up on a DIY basis, but that doesn't mean that they will then represent a defensible methodology for collecting accurate data. It is quite easy to get any answer you like, but that isn't the point - I believe you'll need actionable, sustainable results with the credibility of a researcher who has a track record in order to persuade potential investors as to the viability of your proposition.
In fact, depending upon what the proposition is, you may find that an online survey is hopeless. For instance, my wife's research business (there, I've declared my interest) has carried out work targeting buyers of large-scale capital investment items. Online surveys, or indeed telephone tick-the-box surveys, were completely useless in such a case - only one-to-one, in-depth interviews yielded the degree of insight required to generate usable results for the client. Equally she's used online surveys to poll individuals on everything from contact lenses to sexual exploits.
If you can give us an idea of the sort of proposition you have in mind - in general terms - then I'll ask her to make some suggestions as to the best course, if you like.
skwdenyer said:
Online surveys are easy to set up on a DIY basis, but that doesn't mean that they will then represent a defensible methodology for collecting accurate data.
Indeed. What is that going to give you?
Are hundreds of people going to invest their time in something and give nothing back? And even if they did, what value will the 'evidence' of 100 anonymous internet users have? I wouldn't invest based upon that.
Your original idea was better if you want to get actual results. Is there any way you could meet the orders of whatever it is - even at cost price or a loss - just to get some orders through the books before you expand advertising etc.
Without knowing any more about the product, it is difficult to advise further.
You have the catch-22 position. An investment is easy for someone to make if they have a guaranteed return. However, with a guaranteed return that investment is of less value to you, because if need be you can go to the bank yourself.
Unless you can get *some* genuine orders, you are going to be left with that.
To give you an idea, over the years I have tried 3 or 4 'product' ideas that I was able to market within mailings I has already aimed with my current product. Out of those, despite my thought it would work, the response was none of them would have justified further investment. However, I *could* have supplied those order in a shortish period if needed.
Sometimes, knowing something *doesn't* work is just as valuable as knowing it does. My advice would be to start small scale and work up.
Thanks for all of the constructive feedback. I'm going to hold off on the survey side of things because although the R&D is complete, the IP isn't fully protected yet, and therefore can't disclose the product and it's USPs.
I have a meeting next week with my business consultant and an associate who may possibly have the links I'm looking for regarding investment sources; I just wanted to be able to present a solid method of gauging potential orders but it looks like that idea's out of the window. However, thanks for taking the time to respond, I appreciate it.
I have a meeting next week with my business consultant and an associate who may possibly have the links I'm looking for regarding investment sources; I just wanted to be able to present a solid method of gauging potential orders but it looks like that idea's out of the window. However, thanks for taking the time to respond, I appreciate it.
As a tool (without ethical questions), it will give you some indication.
However, these are the limitations:
1. It will cost you a lot of money to generate traffic to the site. That is money better spent when you are ready to sell.
2. Online shopping analysis will tell you that there are a significant percentage of people who will go as far as the point where they submit their credit card details, but at that key moment, they reconsider and change their minds. I don't know what the number is off hand, but it is surprisingly high. Your survey will not account for this discrepancy.
Would echo the advice regarding engage others to run some kind of a survey for you.
But just be careful. About four years ago I was heavily involved as a technical lead for a new telco-linked initiative. The principal stakeholders were all ex-directors of companies like Orange and 118 118. The idea was brilliant and new, and on paper at least, was set to soar. Surveys and such, both through agencies and just people on the street seemed to indicate we had a good product at a good price point. Barclays thought the same - enough to hand us half a million quid with no capital repayments for a number of years. The technical infrastructure went into place, people were hired and off we went. It was a huge effort. We had 25 or so sales guys running around the country doing their thing from day one.
Guess what? It hardly sold. Nobody bought into it. When push came to shove and prospects had to put their money where their mouth was, they stopped short. This fact primarily, along with our over-confidence, huge costs and negative cashflow, meant the whole thing got wound up within three months of going live, leaving a massive debt to the wind.
Moral of the story? You just cannot predict how something will sell. Or perhaps the moral is to start slow and easy!
However, these are the limitations:
1. It will cost you a lot of money to generate traffic to the site. That is money better spent when you are ready to sell.
2. Online shopping analysis will tell you that there are a significant percentage of people who will go as far as the point where they submit their credit card details, but at that key moment, they reconsider and change their minds. I don't know what the number is off hand, but it is surprisingly high. Your survey will not account for this discrepancy.
Would echo the advice regarding engage others to run some kind of a survey for you.
But just be careful. About four years ago I was heavily involved as a technical lead for a new telco-linked initiative. The principal stakeholders were all ex-directors of companies like Orange and 118 118. The idea was brilliant and new, and on paper at least, was set to soar. Surveys and such, both through agencies and just people on the street seemed to indicate we had a good product at a good price point. Barclays thought the same - enough to hand us half a million quid with no capital repayments for a number of years. The technical infrastructure went into place, people were hired and off we went. It was a huge effort. We had 25 or so sales guys running around the country doing their thing from day one.
Guess what? It hardly sold. Nobody bought into it. When push came to shove and prospects had to put their money where their mouth was, they stopped short. This fact primarily, along with our over-confidence, huge costs and negative cashflow, meant the whole thing got wound up within three months of going live, leaving a massive debt to the wind.
Moral of the story? You just cannot predict how something will sell. Or perhaps the moral is to start slow and easy!
-DeaDLocK- said:
...2. Online shopping analysis will tell you that there are a significant percentage of people who will go as far as the point where they submit their credit card details, but at that key moment, they reconsider and change their minds. I don't know what the number is off hand, but it is surprisingly high...
I read about this recently, Abandoned Shopping Carts - there's a an article based around McAfee's whitepaper here: http://www.purenet.co.uk/newsletter_shopping_cart_...
-DeaDLocK- said:
Would echo the advice regarding engage others to run some kind of a survey for you // But just be careful // You just cannot predict how something will sell. Or perhaps the moral is to start slow and easy!
Thanks for posting your experiences - I definitely plan to start slowly and simply - what I had planned on doing was licensing out in order to avoid the complexities of manufacturing, distribution etc etc. Hopefully that business model will remain.-DeaDLocK- said:
As a tool (without ethical questions), it will give you some indication.
However, these are the limitations:
1. It will cost you a lot of money to generate traffic to the site. That is money better spent when you are ready to sell.
2. Online shopping analysis will tell you that there are a significant percentage of people who will go as far as the point where they submit their credit card details, but at that key moment, they reconsider and change their minds. I don't know what the number is off hand, but it is surprisingly high. Your survey will not account for this discrepancy.
Would echo the advice regarding engage others to run some kind of a survey for you.
But just be careful. About four years ago I was heavily involved as a technical lead for a new telco-linked initiative. The principal stakeholders were all ex-directors of companies like Orange and 118 118. The idea was brilliant and new, and on paper at least, was set to soar. Surveys and such, both through agencies and just people on the street seemed to indicate we had a good product at a good price point. Barclays thought the same - enough to hand us half a million quid with no capital repayments for a number of years. The technical infrastructure went into place, people were hired and off we went. It was a huge effort. We had 25 or so sales guys running around the country doing their thing from day one.
Guess what? It hardly sold. Nobody bought into it. When push came to shove and prospects had to put their money where their mouth was, they stopped short. This fact primarily, along with our over-confidence, huge costs and negative cashflow, meant the whole thing got wound up within three months of going live, leaving a massive debt to the wind.
Moral of the story? You just cannot predict how something will sell. Or perhaps the moral is to start slow and easy!
Without wishing to denigrate what was done, some surveying is able to get "under the skin" of potential purchasers to the extent of discerning the difference between those who like the idea and those who will really buy. It takes a lot of skill to do this, skill which - in my experience - is lacking even from some of the very largest market research companies.However, these are the limitations:
1. It will cost you a lot of money to generate traffic to the site. That is money better spent when you are ready to sell.
2. Online shopping analysis will tell you that there are a significant percentage of people who will go as far as the point where they submit their credit card details, but at that key moment, they reconsider and change their minds. I don't know what the number is off hand, but it is surprisingly high. Your survey will not account for this discrepancy.
Would echo the advice regarding engage others to run some kind of a survey for you.
But just be careful. About four years ago I was heavily involved as a technical lead for a new telco-linked initiative. The principal stakeholders were all ex-directors of companies like Orange and 118 118. The idea was brilliant and new, and on paper at least, was set to soar. Surveys and such, both through agencies and just people on the street seemed to indicate we had a good product at a good price point. Barclays thought the same - enough to hand us half a million quid with no capital repayments for a number of years. The technical infrastructure went into place, people were hired and off we went. It was a huge effort. We had 25 or so sales guys running around the country doing their thing from day one.
Guess what? It hardly sold. Nobody bought into it. When push came to shove and prospects had to put their money where their mouth was, they stopped short. This fact primarily, along with our over-confidence, huge costs and negative cashflow, meant the whole thing got wound up within three months of going live, leaving a massive debt to the wind.
Moral of the story? You just cannot predict how something will sell. Or perhaps the moral is to start slow and easy!
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